International standards on auditing and accounting

Each ISA contains two types of material:

·        
Basic
principles and essential procedures with which auditors are required to comply.
·        
Explanatory
and other material which, rather than being prescriptive is designed to

assist
auditors in interpreting and applying auditing standards.

Auditors must comply with the international
standards on auditing. Apparent failure to comply leads to disciplinary or
regulatory action against the auditor. In addition the courts may take into
account the ISAS when considering if audit work was adequate in negligence
cases. The explanatory and other material has less authority in theory but not
much less in practice.
Current ISAs issued by the APB are:
200           Objective and general principles
governing an audit of financial statements
210           Terms of audit engagements
220           Quality control for audits of
historical financial information
230           Documentation
240           the auditor’s responsibility to
consider fraud in an audit of financial statements
250           section
A
consideration of laws and regulations in an audit of financial statements
                  Section
B
the auditor’s right and duty to report to
regulators in the financial sector
260           Communication
of audit matters with those charged with governance
300           Planning an audit of financial
statements
315           Obtaining an understanding of the
entity and its environment and assessing the risks of a material misstatement
320           Audit materiality
330           The auditor’s procedures in response
to assessed risks
402           Audit considerations relating to
entities using service organizations
500           Audit evidence
501           Audit evidence-additional
consideration for specific items
505           External confirmations
510           Initial engagements-opening balances
and continuing engagement-opening balances
520           Analytical procedures
530           Audit sampling and other means of
testing
540           Audit of accounting estimates
545           Auditing fair value measurement and
disclosure
550           Related parties
560           Subsequent events
570           Going concern
580           Management representations
600           Using the work of another auditor
610           Considering the work of internal
audit
620           Using the work of an expert
700           The auditor’s reports on financial
statements
710           Comparatives
720           Section
a
other information in documents contains audited financial information
                  Section B the auditor’s statutory reporting responsibility in
relation to directors’ reports.
            Both
the APB and the international accounting standards board (IASB) have glossaries
of terms used.

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